Daily Market Analysis

Forex Market Review (European Session) – Dollar broadly weaker, Loonie hits 2-week high on stronger oil prices

Posted on May 15, 2017 at 3:02 pm GMT

The dollar was broadly weaker amid softer US Treasury yields in the wake of a series of disappointing US economic data. The Canadian dollar was one of the top performing major currencies today, reflecting firmer crude oil prices. Hopes of extending an OPEC production cut deal helped boost the US oil benchmark by 3%. The dollar index extended losses in the European session, driven lower by weaker US economic data. Following Friday’s soft retail sales and CPI releases, the US Empire [..]

Forex Market Review (Asian Session) – Dollar under pressure; oil jumps on hopes of extending OPEC deal

Posted on May 15, 2017 at 7:46 am GMT

The dollar came under pressure against most major counterparts but rose against the yen. Oil prices jumped higher on expectations that oil production cuts will be extended to next year. The yen was only briefly boosted by geopolitical concerns after news of another North Korean missile test over the weekend. On the economic data front, China released industrial production and investment figures for April, which were disappointing. But markets shrugged off the weak numbers to focus on China’s plan to [..]

Forex Market Review (European Session) – Dollar falls after disappointing US CPI and retail sales data

Posted on May 12, 2017 at 2:45 pm GMT

US Treasury yields dropped following disappointing US data releases, which weighed on the dollar. The euro was one of the best performers. US retail sales fell short of analysts’ estimates and consumer price growth slowed in April. The weak data raised concerns that the Fed may not stick to its 3-rate hikes this year, especially since today’s data come after weak first quarter growth. Fed fund futures are now showing a less than 50% probability of the Fed raising rates [..]

Forex Market Review (Asian Session) – Dollar remains below 114-yen; focus on upcoming US data and Fed speakers

Posted on May 12, 2017 at 7:36 am GMT

Currency markets were relatively quiet during the Asian session, partly due to the absence of key data releases. A lack of a catalyst to move currencies kept most major pairs trading in ranges during the session. The market focus will turn to upcoming US economic data later today. The dollar remained below the key 114-yen level and edged slightly lower in Asian trading to touch 113.63 yen. A key risk for the greenback will be the US economic data on [..]

Forex Market Review (European Session) – Sterling weak after soft UK data and BOE; yen broadly stronger

Posted on May 11, 2017 at 2:47 pm GMT

The pound fell after the Bank of England announced its latest decision on monetary policy and also released an update of its inflation projections, downgrading longer-term forecasts. The yen was broadly stronger, while the euro dipped further. Gold and oil gained. Sterling began falling ahead of the BoE decision, after disappointing UK data which showed industrial production fell 0.5% month-on-month in March, reflecting weaker manufacturing, which dropped by a larger-than-expected 0.6% month-on-month, following a 0.3% fall in February. Meanwhile, the UK reported a larger-than-forecast [..]

Forex Market Review (Asian Session) – Kiwi drops to 11-month low after RBNZ; pound steady ahead of BOE

Posted on May 11, 2017 at 7:32 am GMT

The New Zealand dollar under-performed after a neutral RBNZ policy outlook. Sterling was steady ahead of the Bank of England meeting and the release of the BOE quarterly inflation report. The kiwi tumbled to an 11-month low against the greenback as the RBNZ noted a lack of inflation pressure in the economy and indicated it would keep rates low for an extended period of time. The Bank left rates at 1.75%, which was widely expected, but the markets were hoping [..]

Forex Market Review (European Session) – Dollar and pound hold near highs; euro subdued after Draghi

Posted on May 10, 2017 at 2:44 pm GMT

Major currencies were stuck in tight ranges in Wednesday’s European session as the market lacked fresh impetus in a relatively quiet trading day. The euro was subdued after ECB President Mario Draghi failed to give a clear signal of stimulus withdrawal, while dollar/yen and cable held near multi-week highs on expectations of tighter monetary policy. The main event of the day was a hearing in the Dutch parliament where European Central Bank head, Mario Draghi spoke about monetary policy. Draghi [..]

Forex Market Review (Asian Session) – Dollar drops on news of FBI Director dismissal

Posted on May 10, 2017 at 7:46 am GMT

The dollar was weaker during the Asian session after slipping on news that US President Donald Trump fired FBI Director James Comey. The yen was stronger due to geopolitical concerns and talk of another nuclear test by North Korea. Market jitters appeared to ease slightly as the European session opened. Trump’s decision to dismiss Comey put investors on edge, causing the dollar to trim earlier gains when it had hit its highest level against the yen in almost two months [..]

Forex Market Review (European Session) – Dollar hits 8-week high versus yen, boosted by strong JOLTS data; aussie falls further after budget

Posted on May 9, 2017 at 3:01 pm GMT

The Australian dollar and the yen were some of the worst-performing major currencies today on improving risk appetite in the markets. The US dollar gained for a second day relative to a basket of major currencies on rising expectations for a June Fed rate hike and solid JOLTS data. The greenback rose for the third day against the yen to hit an eight-week high of 114.21 yen during the European session. Rising US bond yields have had an impact on [..]

Forex Market Review (Asian Session) – Aussie extends losses to 4-month low after weak retail sales; greenback rallies versus yen

Posted on May 9, 2017 at 7:39 am GMT

The aussie slid to a fresh four-month low against the greenback during today’s Asian session after disappointing Australian retail sales numbers, which unexpectedly declined by 0.1% month-on-month in March, compared to a downwardly revised 0.2% drop in February and missed estimates of a 0.3% increase. The Australian dollar fell to as low as $0.7334. The data will not likely change expectations that the RBA will keep interest rates steady for months to come. Australia’s federal budget will be released later [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms